LAS VEGAS—While the struggles of the Las Vegas lodging market over the last couple of years have been well chronicled, the entertainment capital continues to be a desirable location for those interested in vacation ownership and several brands have recognized the opportunity that exists.
“Las Vegas is continuously ranked as one of the highest vacation spots in demand,” said Dusty Tonkin, EVP of Sales and Marketing for Wyndham Vacation Ownership’s Western/Pacific Region. “It’s one of the major tourist destinations in the country and it boasts a strong global appeal, as well.”
Wyndham, which opened its first property in the market, the WorldMark Las Vegas—Spencer Street, in 1996, has since acquired the WorldMark Las Vegas—Tropicana, its most recent, and built two more: the WorldMark Las Vegas—Boulevard in 2002 and the Wyndham Grand Desert in the same year.
Brian Lower, EVP of Planning & Development & General Counsel for Orange Lake Resorts, a developer and partner with the Holiday Inn Club Vacations brand, proclaimed, “Las Vegas continues to be one of the highest-demand markets for timeshare. There is a unique opportunity in Las Vegas to offer quality product that meets the demands of discerning travelers looking for something different than the standard casino hotel room.” As Lower would argue, timeshares have always belonged in Las Vegas: “The demographic of a casino guest is very closely aligned to that of a timeshare purchaser, so logic says that more casino guests in the market will likely increase demand for timeshare.”
Lower acknowledged that Las Vegas “remains popular for all the same reasons it always has been, as a top entertainment destination,” but when it came to actually establishing timeshares in Las Vegas, the brand turned to its owners. “Our existing Holiday Inn Club Vacations owners indicated Las Vegas was a very desirable destination for them. It’s been one of our country’s most visited locations for decades now, and we felt that, given our product offering and expertise, we would be successful selling there.” He added, “We were anxious to take our business out West and Las Vegas was the logical first step in that expansion effort.” Holiday Inn Club Vacations acquired and subsequently opened its first—and as of now, lone—timeshare in Las Vegas on Jan. 5, 2012: the 685-room Desert Club Resort.
Kim Robert Kreiger, SVP of Hilton Grand Vacations Club & Resorts, attributed its presence in the Las Vegas market to the city’s irresistible appeal, as well: “The success of the market and our commitment to the market has carried us to a growing presence. Our business model focuses on major tourist destinations: Las Vegas is one of those markets.”
As far as timeshare markets go, “Las Vegas has always remained strong or stronger than most,” Lower said. As such, this past March Hilton opened its fourth property in Las Vegas—the 52-story, 1,201-unit Elara. Hilton Grand Vacations Club & Resorts hopes to appeal to a new submarket, where the brand has not previously had a presence. Kreiger said, “We’ve been in the Las Vegas market for 20 years,” since the flagship Hilton Grand Vacations at the Flamingo opened and paved the way for Hilton-branded timeshares in Las Vegas.
Consequently, two additional properties were built and, last year, the brand acquired what has become the Elara. “Being right in the heart of everything, Elara is going to fit the market where we did not have a product before,” he said, citing that the previous properties’ more residential locations might not entice everybody. Hilton hopes the vibrant and energetic atmosphere will cater to a younger clientele seeking out something different.
Situated on the Center Strip, “It’s right across the street from the Aria, down the street from MGM and just around the corner from Paris. When you look at our Hilton Grand Vacations—Las Vegas, it’s removed from the casinos,” Kreiger noted. “There’s no gambling. It’s more of a residential community, and so is our Hilton Grand Vacations Club on the Las Vegas Strip: it’s a country club setting. When you’re marketing in Las Vegas, especially for somebody who’s come for the casinos, the shows, the bright lights and all of the energy of Las Vegas, and you show them something more residential and scaled back, it may not appeal to them.”
Though no new-builds are in the pipeline for the Holiday Inn Club Vacations brand, Lower said, “We are now very focused on building a resort network around our large presence in the Las Vegas market and to make our club as attractive to West Coast owners as it currently is to those in the east.” The Desert Club Resort will undergo renovations that will see all units improved and modernized, as well as the addition of a clubhouse, sales center and f&b and retail facilities.
As for Wyndham Vacation Ownership, Tonkin admits, “The economic downturn certainly interrupted future plans for development”—such as the Wyndham Desert Blue Resort, which put a hold on construction back in 2008. He added that “visitor traffic waned in Las Vegas,” but he maintains, “Since then, things are certainly picking back up. We continue to see occupancy rates remain solid in the Las Vegas market.”
For the time being, the aforementioned brands remain focused on keeping their current properties up-to-date.
Tonkin could not, however, disclose any future plans for Wyndham Vacation Ownership properties in Las Vegas, only saying, “We’re bullish about the Las Vegas market,” a stance that many in the industry have adopted.
Kreiger is one of those of the same mind: “The Las Vegas market continues to be strong and we see it remaining strong into the future.”